Allowances for those already of pension age will be frozen until the personal allowance for the rest of the population catches up.

George Osborne said "no pensioner will lose in cash terms", but HM Revenue and Customs estimates that in 2013-14, 4.41 million people will be worse off in real terms, thanks to inflation, with an average loss of £83.

Within that total, 360,000 individuals aged 65 will lose an average of £285, while 230,000 people will be brought into income tax for the first time.

Automatic review of state pension age to ensure it keeps pace with increasing lifespans.

New single-tier state pension for future pensioners to be set at about £140 and based on contributions.

CHILD BENEFIT

Will be reduced incrementallywhen someone in a household has an income of more than £50,000. It will fall by 1% for every £100 earned over £50,000. Anyone earning more than £60,000 will lose the benefit completely.

It appears that child benefit will still be paid to all, but claimants will have to fill out self assessment tax forms and they will have the relevant amount reclaimed via their tax.

VAT

"Loopholes and anomalies" to be removed - including removing exemptions for sports nutrition drinks andhot takeaway productsin supermarkets. Self-storage, static caravans and hairdressers' chairs will also no longer be exempt.